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Solution brings network flexibility, agility and cost-efficiency, and represents a key step in readying Telstra's core network for the Internet of Things (IoT) and 5G

Telstra and Ericsson to define lead use cases for network virtualization and the ongoing development of the network cloud environment

Ericsson (NASDAQ: ERIC) has been chosen by Australian telecommunications operator Telstra to deploy a full stack telecom cloud solution, focusing initially on transforming the wireless network and providing a 5G-ready core.

Telstra customers will receive benefits such as reduced latency, tailored vertical network solutions and optimized distribution of key network capabilities. By committing to network virtualization and the deployment of Ericsson's virtual network functions (VNFs) and cloud execution environment, Telstra will gain a flexible, agile and programmable network that can improve customer experience and support the development of compelling new customer services.

The solution will also enable networking slicing, which can be used to tailor solutions efficiently for enterprises. Enterprises in mining, public safety, agriculture, manufacturing, utilities and other industries can cost-effectively have their own network slice adapted to their business needs, which will assist in driving growth and productivity in their businesses.

The deployment of the Ericsson solution will provide Telstra's network with a 5G-ready core and will help the network scale as Internet of Things (IoT) adoption increases. As 4G and 5G Radio Access Network (RAN) speeds increase to many gigabits per second and latency decreases, the core network needs to evolve from today's relatively static, centralized architecture to an architecture that can elastically centralize some functions and distributes others to deliver flexibility, efficiency and low latency.

This 5G-ready core network architecture will be delivered on Ericsson's solution for telecom cloud, based on the OPNFV reference architecture. The solution includes the following products:

This new technology will assist Telstra's operations teams in managing, orchestrating and automating network changes, as well as simplifying delivery, scaling and assurance of new services.

Ericsson and Telstra have also co-signed a telecom cloud collaboration agreement. The agreement confirms the joint commitment of the two companies to ongoing development of telecom cloud technology, and to defining and developing lead use cases for network virtualization, which demonstrates the business value of this solution both for Telstra and its customers.

Mike Wright, Managing Director, Networks, Telstra Group, says: "Our customers increasingly demand new network capabilities to help them grow their businesses and improve their productivity. Ericsson's Telecom Cloud provides a 5G-ready core with a virtualized network which can better support new services such as 5G, network slicing and IoT that will be particularly important to our enterprise customers."

Anders Lindblad, Head of Business Unit Cloud & IP, Ericsson, says: "We are very pleased that Telstra has chosen Ericsson's 5G-ready core solution, which will position Telstra to be a leader in telecommunications network virtualization. Ericsson is committed to collaborating with Telstra as our lead customer for the full stack telecom cloud, and we trust their thought-leadership will help make our product better - to the benefit of all our customers."

During Mobile World Congress 2016 in Barcelona, Ericsson will showcase its unique industry insights, the latest innovation and inspirational discussions that enable powerful new business opportunities. We are in the midst of the societal transformation we call the Networked Society: a society in which mobility, broadband and cloud empower every person and every industry to reach their full potential. Opportunity is everywhere, and companies are transforming according to the role they have chosen to play in the value chains and ecosystems of the Networked Society.

Join us in our Hall (Hall 2, Stand 2N60) to learn about 5G, the Internet of Things and cloud, and to discuss the impact digital transformation can have on people, business and society.

Ericsson is the driving force behind the Networked Society - a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, business and society to fulfill their potential and create a more sustainable future.

Our services, software and infrastructure - especially in mobility, broadband and the cloud - are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.

With approximately 115,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world's mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions - and our customers - stay in front.

Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2015 were SEK 246.9 billion (USD 29.4 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.www.ericsson.com